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Zahn Co. predicts sales of 232 units in May and 360 units in June. Each month’s ending inventory should be 25% of the next month’s sales. The April 30 ending finished goods inventory is 85 units. Compute budgeted production (in units) for May.

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Answer:

237 units

Explanation:

Budgeted Production = Sales Prediction in May + 25%  of June Sales - Ending Finished Goods inventory in April

Budgeted Production = ?

Sales Prediction in May = 232 units

25%  of June Sales = 25% of 360 units = 90 units

Ending Finished Goods inventory in April = 85 units

Budgeted Production = 232 units + 90 units - 85 units

Budgeted Production = 237 units

Budgeted Production for May = 237 units.

The budgeted production in units for May is 237.

  • The calculation is as follows:

Budgeted Production = Sales Prediction in May + 25%  of June Sales - Ending Finished Goods inventory in April  

Here

Sales Prediction in May = 232 units

25%  of June Sales = 25% of 360 units = 90 units

Ending Finished Goods inventory in April = 85 units

Now  

Budgeted Production = 232 units + 90 units - 85 units

= 237 units

Learn more: brainly.com/question/17429689

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